The Treasurer, Peter Costello, and the Minister for Justice and Customs, David Johnston, today announced that Project Wickenby has made significant progress on a number of fronts, consistent with the strategy announced by the Government in February 2006. Project Wickenby is a multi‑agency taskforce investigating and prosecuting internationally promoted schemes to avoid or evade Australian taxes and launder money.
The Australian Crime Commission, Australian Federal Police and Australian Securities and Investments Commission have 20 criminal investigations in progress. One investigation recently led to the conviction and sentencing of a high-profile Australian for three offences, including defrauding the Commonwealth.
There is early evidence of a significant improvement (nearly 70 per cent) in the net tax payable by individuals and companies identified in Project Wickenby.
In addition, the Australian Taxation Office has raised more than $50 million in liabilities from finalising tax assessments, penalties and interest and taxpayers making voluntary disclosures.
More than 100 additional civil and criminal inquiries are currently in progress, and civil-based action under the Proceeds of Crime Act 2002 has been brought in two matters, with property to the value of more than $12 million restrained.
This progress reflects the Australian Government’s commitment to improving Australia’s law enforcement capabilities and protecting the integrity of the Australian taxation system.
As part of the 2006-07 Budget, the Government announced funding of more than $300 million over seven years for Project Wickenby. Project Wickenby combines the capabilities of the Australian Taxation Office, the Australian Crime Commission, the Australian Federal Police, the Australian Securities and Investments Commission and the Commonwealth Director of Public Prosecutions, supported by the Australian Government Solicitor, the anti-money laundering agency AUSTRAC and the Attorney‑General’s Department.
The Taskforce has increased the capability of the Commonwealth to respond to threats to the revenue, including threats instigated offshore. Amendments to tax secrecy provisions that were enacted in April 2007 allow the Commissioner of Taxation to share information more effectively with other government agencies to facilitate law enforcement activities for Project Wickenby. This has assisted Taskforce agencies to work cooperatively in the detection and prosecution of fraud, money laundering and international tax avoidance and evasion.